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Industry to govt: Incentivise manufacturing of electrolysers, green hydrogen end use

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  • RE industry leaders said that by leveraging RE produced from solar and wind sources, green hydrogen production can be leveraged significantly
  • The industry leaders also urged the govt to rationalise GST rates for reducing Renewable Energy tariffs for cutting down cost of green hydrogen production

New Delhi: While welcoming the green hydrogen policy recently unveiled by the government, the Renewable Energy (RE) industry urged the Centre to consider incentivising both domestic manufacturing of electrolysers through a Production-Linked Incentive (PLI) mechanism and Green Hydrogen end use. Speaking during a webinar on “Energy for Sustainable Growth” on March 4, RE industry leaders said that by leveraging RE produced from solar and wind sources, green hydrogen production can be leveraged significantly.

Expand wind-solar hybrid plans for green hydrogen production

Stressing on the role that the RE sector will play in green hydrogen production, Tulsi Tanti, Chairman and Managing Director (CMD) of Suzlon Energy said, “There is a need to build upon PLI in solar PV to wind value chain as well as the scope of expansion of wind-solar hybrid plants for green hydrogen production. If RE from solar and wind sources is leveraged, hydrogen production could be scaled up significantly. Infrastructure should be built to harness Green H2 and Green NH3. GST rates should be rationalised for reducing Renewable Energy tariffs.”

“Support for indigenous manufacturing for solar modules may extend to the entire value chain, including subcomponents and materials. The renewable energy sector could be a game changer in driving the growth of the economy,” said Tanti. It was also suggested that to further optimize the cost of Green Hydrogen production, a mechanism for inter-state banking of RE may be considered. 

‘Extend support for domestic manufacturing to entire solar value chain’

The industry leaders also urged the Centre to extend support for indigenous manufacturing for solar modules to the entire value chain, including subcomponents and materials. This would enable growth of ancillary industry, including in the MSME sector, they said. Sumant Sinha, ReNew Power CMD, urged the government to grandfather solar projects that were bid out before the announcement of the Basic Customs Duty on import of solar power equipment.

‘Massive potential to deploy rooftop solar’

Commenting on the huge potential of rooftop solar, industry leaders urged the government to intensify efforts for promotion of the sector. “There is a massive potential for solar rooftop, battery deployment and green hydrogen in India, given a supportive policy framework. India needs to mobilise funds internationally to create the greatest impact on global emissions,” Pashupathy Gopalan, Director, Ohmium, said. Industry leaders suggested that solar cooking through both electric and thermal routes may be promoted. Startups have developed hybrid stoves that can work both on gas and solar power, these may also be explored. 

While noting that carbon pricing mechanism would be beneficial for emerging technologies, the industry said that the government may also consider incentivising carbon capture and utilisation. Circular Economy principles were also discussed which are being considered by the MNRE’s committee on the subject. The MNRE has been directed to take time-bound action for the implementation of Budget announcements.

“In the concluding session, moderators of all thematic sessions presented a summary of suggestions and key takeaways to RK Singh, Minister of Power and New and Renewable Energy. Citing the suggestions as measures for the ‘Future,’ he instructed all ministries to follow up on the suggestions quickly in a time bound manner,” said the MNRE in a statement.

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